Connected car drivers like immediate telematics help and are willing to pay for it

Strategy Analytics reserached consumer interest in telematics and remote vehicle management services. The in-Vehicle UX(IVX) group found that telematics services aren’t only desired in luxury vehicles, mid-range vehicle buyers are highly interested in many forms of telematics remote, diagnostics and emergency vehicle services. Most are willing to pay for telematics services.

While consumer interest remains strong for services which provide immediate help in time-sensitive emergency situations (such as one-touch access to emergency services or stolen vehicle assistance), fewer respondents are interested in remote horn/light functions and remote start. However, willingness to pay for such services remained high across all regions surveyed.

Surveying consumers in the US, the UK and China, Strategy Analytics has found that interest in telematics and remote vehicle management system is not necessarily higher in premium vehicle owners compared to other classes. Though premium vehicle owners in all three regions exhibited higher interest in remote horn / light functions than owners of other vehicle classes, mid-range vehicle owners in the US showed the highest interest in several tracked services, including stolen vehicle assistance, automatic crash notification, remote diagnostics, remote start, and teen driving alerts.

Derek Viita Senior Analyst and report author commented, “Willingness to pay a monthly fee for a package including all of the telematics services described in the survey declined in the US from 2015 to 2016, but overall willingness to pay across all regions remained quite high. More than 50% of respondents were willing to pay at price points below $20 per month in the US.”

Chris Schreiner, Director IVX, added, “With high consumer interest levels and willingness to pay, OEMs should keep putting efforts on introducing telematics services that would bring improved safety and security.”

Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. Strategy Analytics’ Roger Lanctot, won an AUTO Connected Car News Tech CARS Award.